GABY Inc. GABLF GABY has entered into a settlement agreement with Miramar Professional Services, the former shareholders of Miramar and the representative of the vendors (the "vendors' representative"), pursuant to which, among other things, GABY has agreed to settle certain outstanding indemnity claims against the vendors in exchange for the vendors entering into an amended and restated promissory note, which amends and restates the promissory note issued to the vendors by GABY pursuant to the share purchase agreement between GABY, Miramar, the vendors and the vendors' representative, dated February 15, 2021.
The terms of the original promissory note that were amended by the A&R promissory note include, but not are not limited to, a reduction in the principal amount of the original promissory note and a reduction in the interest rate accruing on the principal amount of the A&R promissory note for the next two years. The principal repayment obligations under the original promissory note are also extended pursuant to the A&R promissory note for one year with the final repayment of the principal amount of the A&R promissory note becoming due on April 30, 2029.
In turn, the vendors have agreed to settle certain outstanding indemnity claims against GABY under the share purchase agreement in exchange for, among other things, GABY providing certain operational and financial covenants in the A&R promissory note, all as more particularly set out in the settlement agreement.
The A&R promissory note, among other amendments, reduces the aggregate outstanding principal amount the original promissory note by $3 million.
"In addition to the $3 million reduction of principal, the terms of the settlement agreement provide an aggregate interest savings to GABY of $2.3 million over the next two years. We appreciate the willingness of the vendors of the Mankind Dispensary to work with us to create a mutually-beneficial resolution in this restructuring", stated Paul Stacey, senior vice-president and CFO of GABY.
Photo: Benzinga edit with photos by Matthias Zomer on Pexels and squarefrog on Pixabay
Related News
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!